We use cookies to customise content for your subscription and for analytics.If you continue to browse Lexology, we will assume that you are happy to receive all our cookies. For further information please read our Cookie Policy.

Federal election 2019: Energy and emissions policy snapshot

Australians will head to the polls on 18 May 2019 for the Federal election. It is fair to say that emission and renewable energy targets, as part of the broader climate change debate, are on the policy frontline of each major party. You will find below a summary of each major party's platform as well as our list of topics to watch over the next few weeks.

Key policy summary

The Coalition, ALP and Greens have distinct renewable and emissions policies. An overview of the key recent policy announcements is outlined below:

To read what we have previously written on the National Electricity Guarantee (NEG), please click here.

Issues to watch

Look out for developments by the parties on the following issues over the next few weeks:

Cost - There is a ‘battle of the experts’ being waged at the moment in relation to the cost of the ALP’s energy policy. Former federal government economist Brian Fisher has reported that the ALP policy will cost the economy $542 billion and shrink growth by 0.8%, a claim levelled by the ALP as ‘propaganda’ and by the Coalition as a sign of the ALP’s ‘recklessness’. Job creation arising out of the transition to a ‘green economy’ appears to be another vexed issue

Retail pricing - While the ALP is focussing its energy debate on targets for renewables and emissions, the Coalition continues to focus the debate on the cost of energy to consumers (especially with default pricing regulations). Voters are being asked to vote with their ‘heads’, ‘hearts’, ‘hip pockets’ and doubtless other clichés commencing with ‘h’

Replacing the RET - With recent wind and solar generators taking on merchant risk in developing their projects, many question why a complex, indirect subsidy scheme (such as the RET or NEG) is required at all. It is fair to say that the market continues to allocate technology, competitive and merchant risk further towards developers over time, with the only role for subsidy schemes being to accelerate a shift from fossil to renewable energy sources

Emissions target - While reducing emissions is universally agreed, the rate is not. The range of reduction by 2030 ranges from 26% to 82% based on 2030 levels. Further, debate will continue about what is included (i.e. carryover credits from the Kyoto protocol period) and excluded

Climate change - Messaging from the parties on the existence and effects of climate change appears to differ seat by seat and state by state, with noted climate change sceptics and advocates vying for swinging margins. Climate change, as a broad topic, was a key element in the recent Victorian state election and Wentworth by-election and is expected to decide at least some seats. This is further complicated by the Federal government’s recent decision on Adani and the question about how the ALP balances its various voter’s interests

Nuclear autumn - Coinciding with the recent announcement of a preference deal between the United Australia Party and the Coalition, several comments have been made by the Prime Minister about the construction of nuclear power in South Australia on Tasmanian radio (qualified by stating he was reluctant to subsidise the nuclear industry in the process.) While none of the major parties have an overtly pro-nuclear policy platform, voters should expect this debate to continue if the United Australia Party ends up controlling the balance of power.

"I have enjoyed receiving the Lexology newsfeeds over the last few months and in general find the articles of good quality and relevant. I like the fact that the email contains a short indication of the subject matter of the articles, which allows me to skim the newsfeed very quickly and decide which articles to read in more detail."